Who is a Nominee?
A nominee is a person or entity that is legally appointed or designated to act as a trustee or an agent on its nominator’s behalf in a limited capacity or a specific manner.
A nominee can never be the owner of the company itself.
Why do we need to use Nominee Service?
The Singapore Companies Act Chapter 50 requires at least one resident director and one resident shareholder at the time of its registration.
A ‘resident’ is understood as a citizen or a permanent resident of Singapore; else an Employment or Dependent-Pass holder or having an Entry Pass.
Nominee services facilitate nominee resident director, nominee agents and nominee shareholder for companies having foreign or non-resident owners, till such time as an actual resident can be arranged.
In Singapore, foreign entities and individuals are prohibited from self-registering their own companies and must necessarily employ a professional or legal firm for registering their businesses.
The nominee services personals hence fulfil the statutory obligations and never interfere in the management or decision-making.
Their function is passive on that account. However, they can act on your behalf while opening corporate bank accounts without your having to make an extra trip for that.
Also, they can advise you on reaping tax benefits while being on the right side of the law.
What do we need to keep in mind?
For availing these services, it is required that you pay a refundable security deposit.
This amount is refunded back to the client’s account upon the termination of the nominee services.
In the event of an unfortunate scenario of a client being a fraud and misusing the Singapore company or fleeing the country, the security amount is forfeited.
Since the firm in their capacity of being the nominees has to confront the Singaporean authorities, therefore, the forfeited fund is used to cover the liquidation and litigation damages.
We are here to guide you through this maze and offer professional, reliable and trustworthy nominee service providers at affordable rates.
Should you need assistance or would like to find out more about Company Secretarial services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.